Creating and sending out invoices can be costly, both in terms of money and time. But you can ensure you save time and money in your invoicing process by following these excellent tips.
Make Sure No Information Is Missing
First off, you need to ensure every invoice you send out contains all of the relevant information that you and your client need to have. If there are any issues with the invoice, it will then be a lot easier and quicker to deal with. And as you know, time is money.
Make sure the following information is contained on your invoices:
· The name and address of your company and the client.
· The date of dispatch.
· The purchase order number.
· The invoice number.
· Details of the service or product delivered.
· The amount invoiced.
· Payment details, such as bank details.
· Payment terms and conditions.
· A VAT breakdown.
· The due date.
Utilize Invoicing Software
One of the best ways of ensuring no vital information is missing from your invoices is to use an online invoice maker.
You can then be assured every invoice’s content is correct and consistent. Furthermore, using accounting software like QuickBooks to generate and send your invoices will save you a lot of time in comparison to sending invoices manually.
When invoices are sent directly to clients by email, you save money as well as time. That is because you do not incur the cost of printing out invoices and mailing them, and you gain additional time to spend on more important aspects of your business that can generate more profits.
You probably already use an online paystub generator to save time and money. So, do the same for your invoicing. Furthermore, when you use cloud-based invoice software, you can instantly send invoices anytime, anywhere, or from any device.
Use a Fixed Due Date and Automated Reminders
As mentioned above, it is critical that your invoice includes a due date for the amount to be paid. But do not make the mistake of giving your clients too short or too long a time to pay.
Leaving invoices with open due dates may sound like a good idea, but that can end up meaning you wait for ages for clients to pay. It also makes it easier for your clients to forget to pay.
A grace period of two weeks is usually recommended for due dates. That shows your client that you are not rushing him or her and it makes sure you get paid in a timely fashion.
Also, use automated email reminders to remind any clients who do not pay on time. By using appropriate due dates and automated reminders, you can save time and make sure you get the money you are owed on time.
Create Incentives for Paying on Time
Even when you use two-week due dates and automated reminders, you could still sometimes face situations in which clients do not pay on time. At the end of the day, the only way you can force clients to pay invoices is to proceed with legal action.
But if you do take legal action, it will cost you a lot of time and money just to get your payment, so it should be your last resort.
To make sure payments are made, consider creating client incentives instead. For example, you could offer a discount to clients who pay their invoices on time or charge late fees to clients who do not pay by the due date.
With either option, make sure you are upfront with the client about your terms and conditions from the start and that the information concerning things like discounts and late fees is always included on the invoices you send out. Ultimately, preparing for all invoicing eventualities will enable you to save both time and money.